HIGHLAND Airways, a Scottish regional airline, were yesterday revealed as the preferred bidders to run the new Valley to Cardiff air service.

The Inverness-based airline will provide two daily return flights connecting North and South Wales each weekday using 19-seat BAe Jetstream aircraft.

Fares will be capped to a maximum of #50 plus airport tax thanks to a Welsh Assembly grant estimated at #1.6m.

Enterprise Minister Andrew Davies said the contract would be awarded to Highland Airways in early March after a 10-day statutory period to consider objections.

Anglesey MP Albert Owen said the flights could herald the start of bright new future for the island.

But environmentalists criticised the move claiming the money would be better spent on improving rail services.

Mr Owen, who chaired the Valley Action Group which campaigned for the airlink, said last night: "I believe a proper integrated transport system doesn’t just involve road and rail but sea and air as well.

"The isle of Anglesey is well placed to benefit from this new development as it lies close to the major seaport at Holyhead and has excellent road and rail links.

"Now we have an airport with regular scheduled flights as well.

"That puts us at the heart of a transport system and not the periphery and that is an excellent selling point to businesses."

Speaking at the new Maes Awyr Mon terminal building, part of RAF Valley, Andrew Davies said: "Maes Awyr Mon is an important step forward in the continued economic development of North west Wales, and will result in improved business linkages, increased tourism opportunities, and significant time savings for travel between north and south Wales."

"Air services have an important role to play within the framework of an integrated transport system, and as Minister I am keen to exploit their full potential."

"It will provide a significant boost for local business and tourism across North West Wales.

"As council leader I am positive about this the Maes Awyr Mon project and enthusiastic about the economic and social benefits a new civilian air- link can bring to North West Wales. I look forward to the day when flights to a number of destinations, including Dublin and London, will be available from the airport."

Anglesey council have awarded a three year Airport Operators contract to Harrogate-based Operon to run the airport.

Mr Roberts said the form already manages office accommodation for Denbighshire Council and has contracts at the University of Wales, Bangor.

Friends of the Earth Cymru condemned the intention to spend taxpayers’ money on subsidising the flights.

Director Julian Rosser said: "Rhodri Morgan is robbing the poor to subsidise the rich and fuelling dangerous climate change in the process.

"Not only will this service add to Wales’s rising carbon dioxide emissions, it will take money which could be better used to fund an improved railway link between north and south Wales."

"Our politicians are very good at fighting about who cares most about climate change.

"But if we’re really going to cut emissions, every decision we make now must consider the environmental impact."

Highland Airways commercial director Basil O’Fee said the airline was "pleased and honoured" to be awarded the route.

He said: "It will be of great benefit to Wales from a commercial, and tourism point of view, avoiding a tiresome five hour road journey each way."

The airline plans to introduce the route in April.

Anglesey AM Ieuan Wyn Jones said: "The air service is another piece in the jigsaw that will enable us to revitalise the economy of North west Wales."